Intel's 450-mm wafer spend starts in 2013

LONDON – Leading chip company Intel Corp. is planning to spend $2-billion preparing for transition to 450-mm diameter wafers in 2013.

The company has forecast a total capital expenditure for 2013 of $13 billion and the company's chief financial officer Stacy Smith broke the number for 450-mm developments out during a conference call with analysts to discuss the company's 4Q12 financial results.

"Capital spending for our core business is expected to be roughly flat to 2012. Additionally, we will spend roughly $2 billion to start building our first 450-millimeter development facility," Smith said.

Neither Smith nor CEO Paul Otellini indicated where the 450-mm development facility would be located. Intel already has two wafer fabs that have been previously labeled as being destined for 450-mm wafer production; the D1X fab in Hillsboro, Oregon and Fab 42 in Chandler, Oregon.

One possibility is that the $2 billion is earmarked for the construction of a second 1.1 million square foot module at Hillsboro alongside D1X module 1 in Hillsboro.

Without referencing Hillsboro Otellini told analysts that they were starting to see the first significant investments in bricks and mortar – and some equipment – in preparation for the transition to 450-mm production, which would happen later in the decade. Otellini added that the investment in ASML Lithography NV that took place in 2012 has put the company in a better position to predict the exact timing of the transition and to deploy capital.

Neither Smith nor CEO Paul Otellini indicated where the 450-mm development facility would be located. Intel already has two wafer fabs that have been previously labeled as being destined for 450-mm wafer production; the D1X fab in Hillsboro, Oregon and Fab 42 in Chandler, Oregon.
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bad architecture? x86 you mean? 450mm wafer makes the cost more tolerable and x86 can better compete with ARM atleast at the low end which is now what Intel is targeting with their Africa smartphone release I guess.